M Walsh
1
Junior Cert Business
The consumer
A Consumer buys goods and services for their own use, rather than to sell on to others.
A good consumer is:

An informed consumer

Aware of laws and organisations that protect consumer rights

Able to make complaints if the goods/services are unsatisfactory

Keeps their receipts as this is the “proof of purchase”
A Trader is a person who buys goods/ services with a view to sell them on to others at
a profit
The informed Consumer

Keeps receipts (proof of purchase)

knows what they want and chooses wisely

They do not Impulse Buy

They do not fall victim to “False Economies”

They find out about price and quality prior to making a purchase
o
They make enquiries of people who have used the goods/ services
o
They visit various sellers to see what’s for sale
A Receipt is written proof of payment for goods and services. It is very important,
especially when payment is by cash as there is no other written proof of payment.
A Receipt will show:

The amount paid

Who made the payment

The date the receipt was issued

A number for reference

Signature of the person receiving the money
In some cases a price may be displayed on a product but the seller does not accept this
to be the sale price of the goods and is simply inviting the consumer to make an offer
to purchase the goods, this is called “Invitation to Offer”
M Walsh
2
Reasons why consumers need protection:

Misleading advertisements

Slick/ pushy sales methods

Overcharging and incorrect weights

Unsafe or low quality goods or services
Brand Name: easily recognisable name that distinguishes one product from another
(NIKE)
Logo: the picture that is associated with a brand name
Consumer Law
When you buy goods you enter into a “Contract”, this is a legally binding agreement
between two or more people.
The 3 vital elements of a contract are:

Offer (customer makes offer to buy goods)

Acceptance (retailer accepts the offer and agrees to sell)

Consideration (something of value passed from one person to the other)
The consumer is protected by:
1) Consumer laws
a. The Sale of Goods and Supply of Services Act 1980
i. Goods must be of merchantable quality
ii. Goods must be fit for the purpose intended
iii. Goods sold by description must be as described
iv. Goods sold by sample must match their sample
v. Suppliers of services must be qualified and the materials they use
must be of merchantable quality
This act states that it is the seller who is responsible for putting
things right if there is a problem
b. The Consumer Information Act 1978
i. This act forbids suppliers to give any misleading information about
products price, quality or service
ii. It states that price lists showing prices of goods and services
should clearly display where consumers can see them
M Walsh
3
2) Organisations and institutions that protect the consumer
a. Enterprise Ireland
i. State (government) organisation
ii. Sets standards for the safety and quality of goods/ services
iii. Carries out research into new products and issues reports
iv. Operates the National Standards Authority of Ireland (NSAI)
b. Trade Associations
i. Most
suppliers
of
goods
and
services
are
members
of
organisations which lay down standards of conduct (behaviour) for
their members. These associations have people called arbitrators
who try to solve disputes between their members and customers
c. Office of the Director of Consumer Affairs
i. Enforces the consumer information act 1978
ii. Publishes booklets advising consumers about their rights
d. Small Claims Court
i. Deals with consumer complaints upto €1269.74
ii. Managed by a court registrar
iii. Handles claims speedily without the need for a solicitor for a fee
of €9
iv. You must try to settle your dispute with the seller first before
you can use the small claims court
e. Consumer Association of Ireland
i. Voluntary body that gives advice to consumers
ii. Carries out surveys and publishes the findings in its magazine
“Consumer Choice”
f. Office of the Ombudsman
i. Investigates
complaints
made
by
consumers
about
“state
organisations (eg Government departments)”
ii. You must try solve the dispute with the state organisation
yourself before seeking help from the ombudsman
iii. Ombudsman for Credit Institutions: deals with complaints against
banks/ building societies etc
iv. Insurance Ombudsman of Ireland: deals with complaints about
insurance companies
A Guarantee or a Warranty is a written undertaking that the manufacturer, or
somebody appointed by the manufacturer, will repair or replace the item within a
stated period of time after the purchase date.
M Walsh
4
Food labels must be:

Clear and legible in a language that is easily understood

Show the name of the food and the ingredients in descending
order

Show the unit price per litre/ kilo and the actual selling price

Show the use by sell by or the best before date

They may include a bar code (a series of lines on goods that allow
computers to identify products)
o
Bar codes are used at point of sale to identify the product
and the price of the product, thus giving the customer a
detailed receipt as well as speeding up their shopping
o
Bar codes are used to assist retailers in stocktaking as
they allow computers to record the quantity of an item
that has been purchased out of stock.
How to work out the unit price:
40 page copy= 60cent (60/40= 1.5 cent per page)
60 page copy= €1.00 (100/60= 1.7 cent per page)
Making a complaint
Reasons for consumer complaints…

False claims about products/ services

Misleading information given by seller

Faulty goods/ services

Goods delivered were not as ordered

Overcharging/ incorrect weights
Redress available to consumers:

Refund

Repair

Replacement

Credit note
o
In credit transactions this is given by the seller to the buyer to show the
amount owed by the customer/ paid has been reduced
o
In cash transactions this is a note which allows the buyer to purchase
something in the sellers shop for the amount of the credit note, credit
notes are usually valid for six months
M Walsh
5
Letter writing (writing a letter of complaint) Nine point plan of letter writing:
1)
Name/ address of sender
2)
Date
3)
Name/ address of recipient
4)
Salutation
5)
Introduction
6)
Main body
7)
Follow up
8)
Closing
9)
Signature and date
Ramsgrange
New Ross
Co Wexford
16/11/2013
Woodies DIY
North Main Street
Wexford
Re: letter of complaint about faulty barbeque
Dear sir/ madam,
On 11/11/2013 I purchased an “Outback barbeque” in your store, please find a copy of the receipt
attached. I wish to make a complaint about this item.
On the day of purchase I was assembling the barbeque when I noticed that there was a crack in the lid of
the barbeque, I immediately called the store to make a complaint. The manager on duty told me that this
was not Woodies problem and that I would have to contact the manufacturer “Outback Barbeques”. I told
the manager that I was unhappy with this response but he hung up the phone on me.
I am writing to inform you that my contract was not with “Outback Barbeques” it was in fact with Woodies
and under the “Sale of Goods and Supply of Services Act 1980” this item was not fit for the purpose
intended nor was it of merchantable quality. I demand a full refund or replacement for this faulty product
as soon as possible or I will be required to take the matter further.
I look forward to a positive response,
Yours faithfully,
Anna Reilly